Savings, funds for the future

Menu

Invest In The Long Term

Buying and holding for the long term allows an investor to make a return from the stock market. Even if you are trying to trade the short term ups and sowns having a seperate long term portfolio can be a good idea.

Here are some reasons to invest into the long term.

1. Safety

It is considered pretty safe to invest into the stock market over the long term. It even apears that one of the stock investing basics is that it goes up on average over time. The S&P 500 past performance shows that on average the market in general goes up about 10% a year, and that is when you look at things such as bears markets.

It can even be used as a safety account geared more toward long term growth. Even if your goal is to learn to swing trade and to get some huge returns in the short term it can still be a good idea to keep a safer long term account on the side.

2. Cash Flow

Investors can make some extra cash flow off of their investments by getting into high dividend paying stocks which pay out a percentage of the company’s profits to people who invest into their stock. It may take a lot of money for that to amount to anything livable, but as stocks grow so do the dividends.

There are plenty of people, who are living off of dividends in the world, it didn’t happen overnight.

3. Can Be Great Investments Out There

There are some situations where a stock is just built for a long term investor to come along. Some stocks may not be good for trading, but they would make excellent long term plays. Investing into these great long term plays could mean a huge income in the future.

These are just a few reasons to take advantage of long term investing into the stock market. It has made many millionaires throughout the years and continues to be one of the best places to grow your money.